Caixin Media October 5th news (Editor Zhao Hao) on Friday (October 4th), the Hang Seng $Hang Seng China Enterprises Index (800100.HK)$ rose by 3.06%, closing at a new high in two and a half years, rebounding by 36% from the September low, with most of the gains occurring after September 24th.

On September 24th, the People's Bank of China, the China Banking and Insurance Regulatory Commission, and the China Securities Regulatory Commission leaders jointly held a press conference, announcing a series of bullish policy measures. The intensive release of policies has released strong signals to stabilize expectations, strengthen confidence, and support high-quality economic development.

Since that day, the Hang Seng China Enterprises Index has soared from around 6400 points to the current 8156 points, with some constituent stocks experiencing astronomical gains. Triggering a wave of bids, multiple financial institutions including BlackRock have turned bullish on Chinese assets.

Bridgewater Associates founder Dalio stated that if the Chinese leadership can deliver measures "far beyond" commitments, this round of stimulus measures will be a historic turning point. Considering that Chinese assets are still very cheap, various factors have ignited a market 'animal spirit,' leading to a large number of investors entering the market to bottom fish.

Senior portfolio manager Eric Yee of Atlantis Investment Management in Singapore stated, 'We are cutting long positions across Asia to provide funds for buying Chinese stocks. Everyone is doing this. This is a policy-driven good recovery. You wouldn't want to miss such an opportunity.'

Victoria Mio, the stock director for Greater China at Janus Henderson Investors, wrote in a report that the current valuation of the Chinese stock market is quite attractive, with positive momentum in the technology, healthcare, and financial sectors. These industries are most likely to benefit from increased liquidity and supportive policies.

Mio believes that under the influence of multiple factors, this round of stimulus is completely different from the past and is expected to create a lasting momentum. The performance of the Chinese stock market in the next few quarters may outperform other developed and emerging markets.

Citi analysts mentioned that the resilient demand for leisure travel during the Golden Week holiday, with strong momentum in tourist flows. Data previously released by the China State Railway Group showed that on October 1, the national railway sent 21.448 million passengers, setting a new record for daily passenger traffic.

In the Hong Kong stock market on Friday, $MEITUAN-W (03690.HK)$Please use your Futubull account to access the feature.$BABA-W (09988.HK)$Please use your Futubull account to access the feature.$JD-SW (09618.HK)$ It is the biggest contributor to the rise of the Hang Seng China Enterprises Index. In the US stock market, $Alibaba (BABA.US)$ it rose 6.71% this week, $JD.com (JD.US)$ while supporting an increase of 17.72%. $NASDAQ Golden Dragon China (.HXC.US)$ It has accumulated an increase of 11.85%.

JPMorgan strategist Nikolaos Panigirtzoglou wrote in the report: "In the past week, the sharp rise in Chinese ADR (American Depositary Receipt) companies is mainly the result of new purchases rather than short covering. It seems that short covering of individual stocks has played a very small role."

Both S3 Partners and JPMorgan have stated that if shorts are forced to cover their bets, it may give Chinese concept stocks further momentum. S3's Head of Predictive Analytics, Ihor Dusaniwsky, predicted that if the upward trend continues, there will be "a large amount" of short covering, which will further drive up stock prices.

This week, the assets of several overseas listed China ETFs continued to increase, such as$KraneShares CSI China Internet ETF (KWEB.US)$,$iShares MSCI China ETF (MCHI.US)$and$iShares China Large-Cap ETF (FXI.US)$ According to documents filed with the U.S. Securities and Exchange Commission (SEC), some of the most prominent actions Third Point took in the second quarter, respectively, were to establish positions, shareholding of and more.

Meanwhile, the "China Dragon" ETF from the well-known fund company Roundhill landed in the US stock market with the symbol "DRAG". Roundhill CEO Dave Mazza stated that the unique feature of DRAG compared to other ETFs is its concentration.

Roundhill focuses on providing innovative ETFs, and last year it launched $Roundhill Magnificent Seven ETF (MAGS.US)$ , tracked $NVIDIA (NVDA.US)$,$Alphabet-A (GOOGL.US)$and$Apple (AAPL.US)$N/A.$Tesla (TSLA.US)$,$Amazon (AMZN.US)$,$Microsoft (MSFT.US)$and $Meta Platforms (META.US)$ Seven stocks, rated as the annual 'Best New ETF' by ETF.com.

Similar to MAGS, DRAG only tracks stocks of 9 Chinese companies, namely (arranged by weight) Meituan, $XIAOMI-W (01810.HK)$N/A.$NetEase (NTES.US)$,$PDD Holdings (PDD.US)$, JD.com, $TENCENT (00700.HK)$Please use your Futubull account to access the feature.$BYD COMPANY (01211.HK)$ , alibaba and$Baidu (BIDU.US)$Roundhill considers these symbols as the "Big Seven" of Chinese stocks.

WallachBeth Capital ETF director Mohit Bajaj said: "We see people gradually returning to emerging markets. If people believe that China can continue its current performance, then the ETF may perform well."

Editor / jayden